Passive Activity Loss Question

[rfk]

In tax year 2008 one of my client's had property A and B, and A was not available for rent; it was only available to be sold. It had expenses and carryover losses. Therefore, no current losses available.

However, my question:

Carryover losses would still be available for property A from the prior years with current losses from property B totaling a $25,000 overall passive activity loss? So a percentage of property A loss is being carried forward by my software (about 1/3), and the balance of the current loss is being sustained by property B.

Please advise if I am missing something. Form 8582 is being shown with the prior losses and carryover for Property A. I just want to be sure I am on the right track. It is late in the day, and I want to be sure that I am on the right track

Thanks for your help.

rfk

[Maribeth]

The passive loss carryforward will continue to be carried forward until it is used up or you dispose of the property. The carryforward will be taken into account for the total current year losses and may become part of the $25000 allowed.

Maribeth

[rfk]

Thank you, Maribeth

Thanks for the insight; it was late yesterday and I needed clarification for the loss carry forward from the previous time(s).

rfk